Investors flooded the market for SpaceX options on the first day of trading, smashing volume records and pushing the company’s valuation into a head-to-head comparison with Apple. The explosive start underscores the intense demand for exposure to Elon Musk’s private space venture — but also raises fresh questions about risk in an already volatile market.
First-day frenzy
Options contracts tied to SpaceX began trading on a major exchange Tuesday, and the response was immediate. Traders snapped up calls and puts at a pace that eclipsed any previous debut for a company that isn’t yet publicly listed. The activity was so heavy that exchange systems flagged unusual volume within hours.
The surge reflects a broader appetite for speculative bets on high-growth private companies. SpaceX has long been a favorite among venture investors, but the options market gives a much wider pool of traders a way to wager on its stock price movements without owning shares. That liquidity came with a cost: spreads were wide, and some orders took minutes to fill as market makers struggled to keep up.
Valuation tested
The first-day options action effectively pits SpaceX’s implied valuation against some of the most valuable companies in the world. Apple, currently the largest publicly traded firm by market cap, serves as a benchmark. At points during the session, SpaceX options were pricing the company at levels that would put it among the top five U.S. corporations by value.
That kind of comparison is unusual for a company that still relies heavily on government contracts and a nascent satellite internet business. Starlink, SpaceX’s broadband division, has shown strong subscriber growth but isn’t yet profitable. The options market is effectively betting that future earnings will justify a valuation that rivals the iPhone maker’s.
Volatility and risk
The record-breaking debut also highlights the risks that come with trading options on a private company. Without the regular financial disclosures required of public firms, investors must rely on limited data and secondary-market reports to gauge SpaceX’s health. That information gap can amplify price swings, and the first day’s wild moves proved it.
Options allow traders to leverage their bets, which can multiply gains but also losses. With SpaceX’s shares not listed on any public exchange, the underlying asset’s price is derived from private transactions and the options market itself — a circular reference that can spin out of control. Regulators have flagged similar concerns about other private-company options products in the past, but so far no restrictions have been imposed.
What comes next
The options exchange is expected to release a full trading summary early next week, including total contract volume and open interest figures. That data will give a clearer picture of whether the first-day frenzy was a one-off event or the start of sustained demand.
For now, investors who jumped in are watching the implied valuation fluctuate with every trade. The question of how long SpaceX can command a premium on par with the world’s most valuable company — without the transparency of a public listing — remains wide open.
